1 Chapter 1 1. Define business and profits Business----- An organization that provides goods and services to earn profits Profits: The positive difference between revenues and expenses rewards for businesspeople who take the risks 2. Distinguish between business and not-for-profit organizations • Business consists of all profit-seeking activities and enterprises that provide goods and services necessary to an economic system. ['entəpraɪz] 事业，项目 Not-for-profit organizations are business like establishments (机构;团体;企业) that have primary objectives other than returning profits to their owners. It operates in both public service and private sector (部门，行业，领域). 3. Identify the factors of production. Labor, capital, entrepreneurs ([ˌɒntrəprə'nɜ:(r)] 企业家), physical resources, information resources. 4. Global economic systems Planned economy, market economy and mixed economies • Planned Economy: ➢ An economic system in which the government owns and operates all sources of production • Market Economy: ➢ An economic system in which buyers and sellers interact 2 ([ˌɪntər'ækt] 相互作用； 互相影响) based on freedom of choice Mixed Economies: Planned and Market • The economies of most countries include both planned and market elements. 5. Distinguish between microeconomics and macroeconomics. Microeconomics 微 观 经 济 学 —study of small economic units, such as individual consumers, families, and businesses. For example, demand &supply, consumer choices. Macroeconomics 宏 观 经 济 学 —study of a nation’s overall economic issues, such as how an economy maintains and allocates resources and how government policies affect the standards of living of its citizens. For example, GDP. 6. Explain the fac...
